Griffin and Highbury: 3 Diamond Buying Mistakes You Should Know About | Business | Scoop.it

When shopping for diamonds, above all it’s important that buyers do their research. It’s easy for those who are inexperienced with purchasing diamonds to make a mistake, something that can be very costly. For that reason, consumers should use all the resources available to them to make the most informed choices possible.  

 

At Griffin and Highbury, we not only focus on assisting our clients in the acquisition and re-marketing of gemstones and diamonds, we also focus on educating our clients, so that they can make better, more informed selections.  We are a boutique, Canadian-based diamond and natural gemstone dealer formed by industry leaders with decades of experience in the diamond and gemstone market.

 

The good news is that investing in hard assets, like diamonds and gemstones, carries with it plenty of benefits.  Hard assets represent a portable and discreet investment, and with diminishing mining opportunities, the supply and demand gap of diamonds and gemstones is only expected to widen.   

 

With that said, purchasing or investing in diamonds or gemstones requires knowledge.  For that reason, we thought it would be helpful if we provided an explanation of some of the common mistakes that consumers make when deciding to invest in hard assets.

 

Being misinformed about the cut of a diamond is one of the most common mistakes that buyers will make. The cut of a diamond is more difficult to judge than other diamond qualities, like the color or clarity, which makes it, in turn, easy for sellers to misrepresent. A diamond may be deeply cut, thus making the diamond appear like it has more carats than it actually does, especially to the untrained eye. Jewelers tend to carry lower quality cut diamonds because they are cheaper, can be sold at a lower price, and have a higher turnaround. For this reason, buyers need to be particularly careful when it comes to the cut of a diamond and only buy from reputable dealers.

 

This point brings us to the next mistake that consumers will often make – purchasing a diamond that hasn’t been certified by an objective agency. Having a diamond certified by an objective agency makes it more difficult for disreputable dealers to cheat people, which is of course very important for anyone planning to resell their purchase in the future.

 

Griffin and Highbury’s Geoff Black elaborates on the point: “[Consumers] need to make sure they have a grading certificate with each and every diamond they purchase, no matter what. One of the costliest errors comes with purchasing a diamond that hasn’t been graded by a respected, objective organization.”

 

Some respected industry organizations that consumers can refer to include the Gemological Institute of America (GIA) and the American Gem Society (AGS). Other trusted grading agencies are the International Gemological Institute (IGI) and the International Confederation of Jewelry, Silverware, Diamonds, Pearls, and Stones (CIBJO).

 

As a last point to be mentioned, diamond buyers need to know exactly what they are looking for when they begin the buying process. More specifically, a diamond investor should know exactly why they want to invest in a hard asset.  They should have a plan going into the buying process and should know two key facts when it comes to the diamond market: one, purchasing diamonds in bulk almost always guarantees a lower price, compared to buying diamonds individually. Second, like most other asset investments, investors are more likely to see a return on their investment the longer they hold on to it. Therefore, investors should have an idea of how long they want to hold on to their diamond purchase and understand that there’s value in holding on to the diamond for a longer period of time.